hi, im hoping someone maybe able to point me in the right direction with an assignment query i have, its aimed at icb level 2 manual and the subject is control accounts. i have a set of figures that i need to draw up a sales ledger control account from,ive an opening debit balance ( large) and an opening credit balance ( small) but whats foxed me is i also have a closing credit balance. Why would i need this and is its presence within the figures a red herring? I also have a figure for a refund to a debtor and im not sure whether that goes on a control account or not, initial feeling is not but im not sure and dont want to wait till the college is open in the morning, hoping someone could help!!! thanks! x
I forgot to add that dont worry about giving me the answer, if someone could just hint at what i need to look at in more detail that would be great! I may well cave and call my tutor later but i was hoping to try and figure it out. By the way, ive chosen to do the icb route as im studying from home with a new baby and it suits me fine, i did the first exam no probs and am nearly finished my level two course, its harder ( esp for someone with zero experience!) but im enjoying it. Going onto to do the computerised level 2 next and then see what turns up, ideally sekf employment but im hoping to get some voluntary /low paid experience first. thanks all! x
Do you have to prepare sales ledger control or sales and purchase ledger control? I assume it is sales and purchase as I believe you cannot have a credit and a debit opening balance on the same a/c. One of them would be the opening balance for your sales ledger control a/c and the other one would be the opening balance of your purchases ledger control a/c. Same stands for your closing balance. About the refund,well,you should go through the control accounts section of your study text again to fully understand what goes in them, try not to complete the assignment without fully understand it. In the ICB exams control accounts used to be valuable marks, I don't know how it is now... But here is a hint, yes they go in the control a/c ;)
Thank you!! Ive just been to see the kids grand dad and raided his old accounting books to try and fathom it out, im going to have another good go whilst baby is sleeping and will see what i come up with. im probably making it more complicated than it is but then again... thanks for the help, i want to really nail this chapter as control accounts do appear in quite a few past papers! fiona.
Don't over complicate it. Think about it as the control accounts are the summary of your purchases or sales ledgers, everything goes in (in summary - in totals) what goes in your ledgers (ie cash book,discounts,returns,etc.), so if you put your returns in your sales/purchase ledger(and you do), you put those in your control accounts too . To confuse matters sometimes(rarely) purchase ledger can have Dr balance and sales ledger can have Cr balance - but again that is rare (it can happen because of returns) and I don't think they will put you in this kind of situation in exams.
ok, thats it im waving my white flag in temporary surrender!! My tutor is off today so will have to wait till tomorrow to figure it out. Ive got to do only the sales ledger control,got figures for sales ledger debit & credit opening balances and a figure for sales ledger closing Credit balance plus the usual sales, receipts, bad debts etc that go into a control account. Its the credit balances that have me stumped particularly the inlusion of the credit closing balance, do i use this is the control account and if so how??!! its a question from osbourne books Business Accounts and it looks to be from the OCR examinations papers. aaaagh! giving up.! by the way attila, nice website, I had a little nosy cheers fiona
If you want, email me the question and details (as it appears in your assignment), I am a bit bored today so I can have a go... I think I did not get the original question but I think I understand it a bit more after your last post. So you have balances for your individual customer accounts, as I said credit balances are rare but can happen normally because of returns. It is hard to tell what to do without seeing the original question and details...
ok, thats it im waving my white flag in temporary surrender!! My tutor is off today so will have to wait till tomorrow to figure it out. Ive got to do only the sales ledger control,got figures for sales ledger debit & credit opening balances and a figure for sales ledger closing Credit balance plus the usual sales, receipts, bad debts etc that go into a control account. Its the credit balances that have me stumped particularly the inlusion of the credit closing balance, do i use this is the control account and if so how??!! its a question from osbourne books Business Accounts and it looks to be from the OCR examinations papers.
